In its latest bid to combat scams, social media company Meta is rolling out stricter rules for advertisers. The new rules are aimed at addressing the rising number of financial scams targeting Australian users and are set to roll out in early 2025.
This development comes at a time when scammers have increasingly used the images and likenesses of prominent public figures (including the likes of business tycoon Andrew Forrest, television personality David Koch, and others) to endorse fraudulent financial products. These scams often involve misleading investment opportunities that trick consumers into parting with money. According to the National Anti-Scam Centre, Australians reported losses of around $135 million due to investment scams this year alone.
Meta has kept this in mind, and its new advertising rules seem to be a direct response to this surge in scams. Under the new rules, businesses advertising financial products and services must verify their identity and financial credentials, including the Australian Financial Services License (AFSL) number, which will be authenticated by the Australian Securities and Investments Commission (ASIC). Businesses will also need to upload documentation proving their legitimacy and provide a work email address to verify the individual responsible for the ad, while individuals looking to run financial ads will be required to submit government-issued id as well.
In addition to this, financial ads will require a disclaimer so that users can see information about who is behind them. This will be present in the “Paid for By” disclaimer, which shall include the name of the beneficiary and payer, as well as the AFSL number or exemption details. Furthermore, the verified ads will be available in Meta’s Ad Library, which allows users to track and review the history of any ad. The new rules will be enforced from early February, according to reports, after which advertisers will be required to complete the verification process before publishing ads.
“The introduction of financial advertiser verification is an important additional step towards protecting people in Australia from these sophisticated scammers,” William Easton, Managing Director of Meta in the Australia and New Zealand region, said in a statement. “Meta’s introduction of financial advertiser verification is a welcome boost in defences for Australian consumers against criminal scammers exploiting digital platforms. This measure aligns with the commitments outlined in the Australian Online Scams Code,” Sunita Bose, managing director of DIGI, added. Meta is a signatory of the Australian Online Scams Code, which provides a voluntary framework for companies to follow, and was introduced by the Digital Industry Group Inc (DIGI) earlier this year.
This development comes more than a month after the social media company removed thousands of so-called “celeb bait” ads as part of a collaboration with Australian banks to prevent scams that rely on the images of well-known figures. In addition to this, the company has also teamed up with various organizations, including the Australian Financial Crimes Exchange (AFCX), to share intelligence on scam-related activities. This also comes a few days after Australia passed a new legislation that bans children under 16 years of age from accessing major social media platforms.
